After concluding many import
scrap deals last week, Turkish steel producers' demand for
scrap has quieted down this week as they have gained relief in terms of inventories after the transactions in question. Last week, the upward movement of import
scrap prices in deals continued. Ex-Baltic HMS I/II 80:20
scrap quotations had started last week at $271/mt CFR and had increased to $280/mt CFR towards the end of the week. Also, in an ex-US booking concluded last week the price of HMS I/II 80:20
scrap reached $283/mt CFR, indicating a $35/mt rise compared to the price levels recorded in ex-US deals concluded in the previous week.
With the influence of the deals concluded last week, the pressure on both producers and
scrap suppliers has subsided and the import
scrap market in
Turkey has made a quiet start to the current week. Although no explicit
scrap offer has been heard in
Turkey, SteelOrbis has been informed that price ideas of suppliers in the US for HMS I/II 80:20
scrap are higher than $290/mt CFR, while European suppliers' price ideas for HMS I/II 75:25
scrap are at around $280/mt CFR
Turkey.
Meanwhile, the Chinese steel futures market increased to record levels last week, which triggered rises in both iron ore and coal prices in the spot market. Chinese suppliers' steel offer prices to their export markets are increasing amid livelier infrastructure investments and also due to the rises seen in domestic steel prices at the beginning of the current week. With Chinese billet export quotations exceeding $470/mt FOB, it is now impossible for Turkish steel mills to use Chinese billet for finished steel production.
Turkish steel mills are still finding it difficult to conclude sales to their traditional finished steel target markets such as the US, the United Arab Emirates (UAE) and Egypt, while they are still receiving semi-finished and finished steel demand from the Far East - China's traditional target market. Although the firm bids of Far Eastern buyers, who are also purchasing from Iran and Vietnam, are not acceptable to Turkish steel mills for now, the tightness of supply in Iran and Vietnam is expected to cause Far Eastern buyers to turn to the Turkish steel producers in the short term. On the other hand, demand in the local Turkish finished steel market has made a slower start to the current week compared to last week.
Turkish steelmakers have gained relative relief in terms of their inventories after the import
scrap deals they concluded last week. As a result, they are currently focusing on their finished steel sales and are expecting the rises in their finished steel quotations - made in line with the upward movement of import
scrap prices - to gain acceptance from buyers